Multiple-step Income Statement Problem:

Star Inc. reported the following items of revenue and expenses for the year ended December 31, 2020:

Wages and salary expense $ 700,000

Sales returns & allowances 250,000

Cost of goods sold 1,500,000

Rent expense 300,000

Sales revenue 3,500,000

Interest expense 25,000

Income tax expense 260,000

Required: Prepare a multiple-step income statement for Star Inc. in good form. Star Inc. had 100,000 shares outstanding for the whole year.